Questions? We have answers.
What are the loan terms?
We can’t guarantee specific loan terms up front, as they are determined by the financial details of the deal and the lender’s risk assessment. Once we have the details of your project, we’ll provide you with a preliminary term sheet within a few days. If you decide to move forward, we’ll enter into a legal agreement, begin the loan application process, and guide you every step of the way through closing.
Do I need a business entity?
Yes, the property and the loan have to be in the name of a business entity such as an LLC, S/C-Corp, etc. Provate lenders usually don’t lend to private individuals. The entity has to be US-based, the individuals controlling it don’t need to be.
Is there a broker fee and how much is it?
Yes, Bluehousefunding earns a broker fee for evaluating your finances, arranging and managing your loan application, and providing guidance and support until closing. Our standard fee is 2–3% points of the loan amount (minimum $2,000), with a 50% discount for first-time borrowers.
How long does it take to get approved?
Time to approval highly depends on how advanced the project is in terms of gathering necessary documents and information such as insurance, appraisals, contractor bids, etc. Once the loan application package is complete, approval is a matter of a few days to a week, of faster if the timeline is tight.
What are the criteria to qualify for a private loan?
Private lenders focus on the property and the deal itself more than your personal finances. They look at factors like purchase price, after-repair value (ARV), rehab budget, and exit strategy. Strong deals with clear profit potential usually qualify.
Do credit scores and tax returns matter?
Not in the same way they do with banks. Private money loans are primarily asset-based. A low credit score or limited income documentation won’t automatically disqualify you. That said, better credit and financials can sometimes mean better rates and terms.
Do I need insurance?
Yes, depending on the type of projects and locations you will need title insurance, hazard insurance (such as fire, flood), and/or builder’s risk insurance. After our evaluation call, we can tell you exactly what you need.
What documents are needed for the loan application?
The documents needed depend on the type of project but typically include:
Signed purchase agreement
Rehab budget, contractor bids, draw schedule
Insurance documents
Personal financial information (as evidence for reserves)
You will receive a personalized list of required documents from us, and we will guide you through all necessary steps to obtain them.
What is a hard money loan?
“Hard money loan” is a general term for short-term, asset-based loans secured by real estate. Approval is based primarily on the property’s value and potential — not on personal income, employment history, or tax returns. Loan terms typically range from 6 to 24 months, with interest-only monthly payments and principal due at payoff.
These loans fund quickly and are designed for fix-and-flip projects, bridge financing, or new construction. While rates and fees are higher than conventional mortgages, hard money loans provide the speed and flexibility investors need to act on time-sensitive opportunities.
Most of our short-term programs fall under this category. DSCR loans, however, are a separate long-term rental loan product.